Increased Sales and Profits for Three Months, Ended June 30, 2008, Hitting New Record-Highs

Komatsu Ltd. announced today its business results for three months ended June 30, 2008 or the first quarter period of the fiscal year ending March 31, 2009. Highlights are described below.

Both sales and profits for the first quarter period under review increased from the corresponding period a year ago. Net sales hit record high for first quarters and net income, new record-high for all quarters.

In the construction, mining and utility equipment business, Komatsu continued to expand sales to ¥534.0 billion (US$5,038 million, at US$1=¥106), up 6.4% from the corresponding period a year ago, by zooming in on expanding markets against the backdrop of burgeoning resource development around the world and infrastructure development, particularly in emerging economies. These measures offset negative factors including sluggish demand in Japan and the United States and slowing demand in Europe as well the Japanese yen's appreciation. Sales of the industrial machinery and other operations made a substantial gain from the previous first quarter period, thanks in part to the addition of NIPPEI TOYAMA Corp. as a consolidated subsidiary in March 2008.

Operating income registered an improvement of 4.5% from the corresponding period a year ago, despite profit-eroding factors, such as increased prices of raw materials. Net income for the first quarter period totaled ¥57.7 billion (US$545 million), up 2.2% from the previous first quarter period.

(Additional Information)
Projected Business Results for the Fiscal Year Ending March 31, 2009
As of the date of this news release, we have no changes in the projected business results which were announced on April 30, 2008.

(end)